Is there something in the water that billionaires drink? Because yet ANOTHER one just warned about coming market and economic chaos this morning!

Sam Zell is his name, and real estate is his game. Zell has founded or invested in multiple public and private real estate firms from his home base in Chicago over the years, and is now worth an estimated $4.8 billion.

As a guest host on CNBC today, he offered nothing but cold water and harsh reality for the starry-eyed optimists. Specifically, he said “holding a lot of cash right now doesn’t seem like a terrible opportunity” … added that we’re in the “ninth inning” of the economic cycle … and warned that recession was right around the corner.

Plus, he added:

“We live in a cyclical world. I think the cycle is changing. Things all over the world are telling us were near the end of that cycle.”

The fact they have built up so much wealth over the years on Wall Street makes their opinions worth listening to. That wealth also allows each of them to speak his mind freely. They don’t have an ax to grind, or corporate masters to answer to, like your traditional happy-talk-spewing brokerage analysts.

Sam Zell – a new warning.

They also clearly don’t offer up the kind of overly reserved, “on the one hand, on the other” kind of claptrap you get from central bankers and politicians.

No, that doesn’t guarantee they’re correct, as I’ve said before. But with so many billionaires piling on here, maybe there’s something to this their warnings? Maybe, just maybe, we should all be paying attention and taking steps to prepare for rougher times ahead? I know I am, and I encourage you to do so, too.

So now it’s your turn to grab the mic from Zell, Soros, Druckenmiller and Icahn. Tell me what you think about their warnings, and whether they’re on target or not. Where do you believe we are in the economic and credit cycle, and what does that mean for stocks?

As for the topic of yesterday’s column – rising corporate debt – several of you shared your thoughts on it overnight.

Reader Thomas warned that high debt loads are indeed a major threat for the market, saying: “‘The borrower is the servant of the lender,’ we read in the good Book. Let us look deeper and identify who the lenders are to see who are the new masters of the money game.

“It is no surprise then to see that it is the same people as was the case during the last recession. We can soon expect the same outcome then as well. Buckle up — it is going to be a bumpy ride again!”

Reader Henry A. said higher debt alone isn’t a problem. It’s how companies use the money they borrow that makes or breaks the markets. His take: “It would be helpful, and actually useful, if the S&P report broke down total debt between productive debt and non-productive debt. Productive debt is not a great problem for an economy because it generates enough additional revenue to eventually retire the debt.

“What will eventually collapse an economy is excessive, non-productive debt from floating bonds to fund stock buybacks or to buy out your competition with cheap money to avoid R&D costs, or wasteful use of capital. With this knowledge, we could better determine the best strategy for future investing.”

Reader Vinman also picked up on that thread, saying: “A disturbing trend is that much of that corporate debt is going to buybacks, which make earnings look better than they are. And even worse, some people at the top are getting their shares bought back at higher prices while they saddle their companies with debt.

“The real reason the markets recovered much of the gains that they lost in January may be the increased amount of company share buybacks that occurred in the first quarter of this year. I wonder how much longer this can last.”

Finally, Reader Dana offered this warning on the markets overall: “In relation to corporate debt being studied by the S&P, they should be concerned as the skull and bones of the 50-day moving average crossed over the 100-day MA. There were only two other times that this happened – in 2008 and 2001, just before the market collapsed.

“I’m sure if I look back further, it has happened in previous recessions. It is only a matter of time now for this Ponzi scheme to come to its end.”

Thanks for weighing in. While markets continue to fluctuate in a relatively narrow range, I believe pressures are rapidly building up behind the scenes.

Frankly, I don’t see how you unwind or pop this massive “Everything Bubble” without a significant amount of market carnage. So my advice remains the same: Stay cautious, prepared, and ready to take advantage of a potentially significant downside break in stocks.

Also, if you’re interested, I just held a special webinar with members of my All Weather Trader service. So they’re locked, loaded and ready for what I see coming down the pike. If you want to get your hands on the intelligence I shared in that presentation, as well as my specific recommendations, click here.

The bond trading business just isn’t what it used to be, what with massive central bank interference and manipulation, tighter government regulations, and more. Top Wall Street banks and brokers are responding by firing thousands of bond market employees and support staff. One research firm estimates a third of fixed-income, commodity, and currency traders and salespeople have lost their jobs in the last half-decade, per Bloomberg.

Looking for bargains on sporting goods equipment and clothing? Then head to your local Sports Authority – because liquidation sales are set to start this weekend. Once inventory and other assets are shed, the bankrupt firm will close for good by August, according to court documents.

So what do you think about the re-shuffling at the TSA? Will it help? How about the ongoing layoffs on Wall Street? Just desserts or another sign of problems in the job market? Will you be taking advantage of the bargains at Sports Authority, and do you think other retailers will follow its lead into liquidation? Hit up the comment section and let me know your views.

Until next time,

Mike Larson

Recommended Articles by Mike Larson:

Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.

{99 comments }

HowardTuesday, May 24, 2016 at 4:41 pm

Hi Mike

Liquidity has distinct advantages at the moment for me. Yes I can lose interest but I can’t lose capital. Also I can allocate globally and geographically into mixed portfolios at short notice. Having said that I feel safer out of markets at the moment until investment trends become more predictable and reliable.

HowardTuesday, May 24, 2016 at 5:07 pm

Anyone watching the current Greek debt negotiations. Greece wants more funds released so it can repay it’s current debt commitments in July. The IMF wants some level of debt forgiveness as a pre requisite to completion of talks. An example could be no interest repayments until 2040. Wouldn’t you love to be a part of that deal??????

F151Tuesday, May 24, 2016 at 5:55 pm

We are part of that deal…… (that is if you pay U.S. taxes).

The U.S. contributes about 20% of the IMF budget.

Enjoy.

cherryTuesday, May 24, 2016 at 11:11 pm

I am with you Mike…..my broker keeps saying stay invested or you will lose money BUT when I look at how much some of my bigger holdings have lost ,,,it would have been better to leave the money in the bank! at least the capital would have been preserved.

smittyTuesday, May 24, 2016 at 5:08 pm

I have had the sinking feeling for a year and have watched the general market continue to tread water. The last three months my purchases of mining shares has made me feel better! But cash and physical assets are the safest place to be by far.

carlosTuesday, May 24, 2016 at 5:09 pm

yr insights are very interesting , but we sometimes forget in all our analisis the american people as a collective unit are very resilient we will continue to move forward against whatever odds are put in front of us god bless america

CarlTuesday, May 24, 2016 at 5:40 pm

I, for one, don’t want to show my resilience in the face of a global depression.

However, as long as “the powerful” aren’t united (as in one-world-government), it seems they flail and contradict each other’s actions. Better yet, it seems they aren’t very good at covering their tracks or telling convincing lies. So as long as they are fragmented the damage tends to leak around the edges, coming in fits and starts and from different sectors – instead of overwhelming us in a tidal wave of governmental failure.

At least that’s my hope.

GordonWednesday, May 25, 2016 at 2:01 am

Its hard to move forward when your pockets are turned inside out and there is nothing there.

ArtTuesday, May 24, 2016 at 5:09 pm

Based on biblical prophecies I believe financial chaos is coming. We may not have long to wait to see if now is the time.

PhilTuesday, May 24, 2016 at 10:26 pm

Where are those biblical prophecies? The ones I read suggest prosperity continues, and markets move higher from here.

James W BarnesWednesday, May 25, 2016 at 1:01 pm

Towards the time of the ‘end’ (now), ‘The love of the masses will grow cold’, ‘lawlessness will increase’. When we are good to each other and operate in harmony we prosper. I’m 69, and I’m very sorry to say that I see morality in general declining. But there is a handful that are improving.

JFWTuesday, May 24, 2016 at 5:12 pm

As long as we have central bankers—–bonds, stocks, will only suffer a small down turn—-10 to 20 %. That’s the system!!!!

LeeTuesday, May 24, 2016 at 9:27 pm

The down-turn was 50% in 2008/09

MikeTuesday, May 24, 2016 at 5:14 pm

New home sales posted a big number today following a strong auto sales number. Normally this would be very bullish going forward. Our consumer/debt driven economy thrives when housing and autos do well. However, with talk of rising rates people may be pushing their decisions forward and what pent up demand there is may play out sooner rather than later. I feel that so long as China, the Middle East or Europe don’t explode our economy should be OK until the election. After that I may join some of you in the bunker regardless of who wins.

Tom RTuesday, May 24, 2016 at 7:54 pm

Our proceeds from principal residence going to new car and fixed rate annuity. Would go with farm purchase if wife OK’d it, but too complicated even though retired 10 yrs. What do people think about EagleLife Insurance Co. vice Genworth or TranAmerica? Will stay out of anything but guaranteed 2 percent until Trump wins (I hope).

I think you may have hit the nail on the head, this could well be the Black swan event to persuade the sheeple that everything was fine up until those nasty Russians went and spoilt everything! Leave it to Hilary to sort everything out (I don’t think).

OrigblessTuesday, May 24, 2016 at 8:14 pm

You favor Donald “Slime” Trump?

ThomasTuesday, May 24, 2016 at 7:09 pm

Dear Elliot,
Take it from a Friend, this insidious website that you referenced above is everything but credible! It is best to stay away from this kind of State Sponsored propaganda!!!! Do I need to say anything more? If in doubt, do your own DEEP due diligence on them. You will be amazed to see who they REALLY are and what they stand for!!!
Start by finding out who are funding them……..!

JimTuesday, May 24, 2016 at 8:56 pm

I have learned the hard way that ninety per cent of what you read on the Internet is BS. We all have a bias to believe something we see in writing. Resist it. Jim

Bob DrummondWednesday, May 25, 2016 at 10:37 am

It may be but it tells you what people are thinking and trying to sell. it is good to know so you don’t end up stepping in ti.

PatTuesday, May 24, 2016 at 5:20 pm

I have spent my life working hard as a so called blue collar type. I have been a casual observer of the world of finances, stocks, bonds and the trading thereof. Now that I’m pretty much retired my interest peaks….However, what I see before us, in my mind is so complex and beyond my understanding I seek a basic source of information that can help me gain knowledge of how to increase my invested money and fixed income.
What I CAN see, seems so uncertain….

James W BarnesWednesday, May 25, 2016 at 2:46 pm

Economics is far from an exact science. That’s because there is so many variables, especially man’s free will, sometimes called investor sentiment. But I have developed a certain sensitivity. If I study all of the different analysts predictions of the economy as a whole, and of general sectors, I can ‘sense’ which ones are right, about 65% of the time or more. How have I gotten this? I’m a Christian.

LarryTuesday, May 24, 2016 at 5:23 pm

I am amazed that the general market has not dramatically sold off in the last few weeks. This is a crazy time of central bank manipulation. I suppose it will take some major world event to spark the movement of equity prices down–it may not happen until we all realize that we are already in recession.

VinmanTuesday, May 24, 2016 at 5:37 pm

Not sure how long this market can continue to rise in the face of so many black swans such as sub prime in the auto industry , Giant derivative positions in the major Banks , rail traffic down 11% in April YOY , baltic dry index continuing to go lower and increasing corporate defaults . Which swan will be the first to rattle the markets first ????

GordonWednesday, May 25, 2016 at 2:04 am

A major world event or one day investors will wake up and say to themselves “What the hell am I doing? “

CarlTuesday, May 24, 2016 at 5:26 pm

I had to read “holding a lot of cash right now doesn’t seem like a terrible opportunity” three times. Even eliminating the double negative doesn’t help much: ‘holding cash seems like an opportunity.” An opportunity for what, holding cash?

Saying “it doesn’t seem like a terrible idea” would make sense; maybe Sam’s brain switched sentences when talking. A quote can’t take liberties with what was actually said aloud. But if the quote is a mangled phrase, why quote it? Print what he meant (if the author can tell!).

Yeah, I know this has nothing to do with the article. But this sentence set the premise for the whole story and it was a total trainwreck. Had to get it off my chest. Carry on, carry on.

Maureen SullivanTuesday, May 24, 2016 at 8:31 pm

Ditto……read sentence ” holding a lot of cash right now doesn’t seem like a terrible opportunity “…..say what ?

rochelleTuesday, May 24, 2016 at 11:11 pm

Exactly Carl! I kept re-reading and couldn’t make it out. You took the words right out of my mouth!
I keep thinking that by the time I figure something out, that train will have left the station. Buying gold when, say what? SOROS IS SELLING!!!? I’m trying not to repeat my mistakes.
What am I supposed to hoard? water? can’t grow vegetables w/o lots of reliable water. can’t move to Idaho either. really stuck! this is more depressing than the threat of nuclear war in the 60’s!

Didn’t Russia recently invade another country? Before that, I vaguely recall some military involvement in Georgia.

So … do you think it’s strange there is military buildup along its borders? Or is it just this last month that’s worrying?

JimWednesday, May 25, 2016 at 12:49 am

Ukraine, Georgia, and Crimea have been part of Russia for hundreds of years. The Russians granted the Baltics their independence. Russia does not have troops stationed in other countries. China does not have troops stationed in other countries. Washington has troops in over one hundred countries. Who brought down the governments in Iraq, Libya, Egypt, and now Syria? The Neo Conservatives in
Washington ( including Hillary Clinton) are a very aggressive and dangerous group. Jim

Fred GibsonWednesday, May 25, 2016 at 2:04 am

Jim, you are exactly right. Nothing is so bad that it can’t be made worse by a war. The Neo-Cons are so absolutely determined to have their war it makes me sick.

James W BarnesWednesday, May 25, 2016 at 2:56 pm

US is not imperialistic, otherwise Kuwait and Iraq would be states of the USA. But Russia IS imperialistic. I say the troops are there to stop a potential acquisition. Too bad they weren’t in the Ukraine.

GordonSaturday, May 28, 2016 at 3:51 am

The US is not imperialist? The see they go they conquer and then set up some petty dictator to keep the people in line. Then in a couple years they change their mind and say what a horrible person this dictator is and he has to be replaced. Another invasion and then with checkbook in hand a rebuilding stage.

peterTuesday, May 24, 2016 at 5:37 pm

You and they are probably right…just early like Bass, Hussman and others. When greed truly turns to panic they will all be right. But how long to you have to wait for them proven right. There are ways to tell and if you’re interested, send me an email. Understanding behavioral finance in this era of central bank rhetoric controlling the markets.

GordonSaturday, May 28, 2016 at 3:54 am

Yes peter your right rhetoric is definitely controlling the market. The rhetoric is coming from that big business big government shill called Yellen.

James MurdockTuesday, May 24, 2016 at 5:44 pm

regarding the TSA. Everybody knows the government would goof up a trainwreck. The
answer to better security at air terminals was to get another bureaucracy going. When will
we learn, folks?

anthony gTuesday, May 24, 2016 at 5:48 pm

this is a long artificial stimulated business cycle. the confidence of the people is still in tact.

Al HallTuesday, May 24, 2016 at 6:18 pm

THINKING LIKE THIS- YOUR GOING TO BE TOAST!

DixieBelleTuesday, May 24, 2016 at 5:49 pm

Warren Buffett once said “when people get scared and start selling, that’s when I start buying”. I do the same thing – just on a smaller scale.

Al HallTuesday, May 24, 2016 at 6:17 pm

DIXIE- THAT WAS YESTERDAY THOUGHTS. wHEN THE SYSTEM COLLAPSES- THIS YEAR- GOLD AND SILVER- THE MONEY OF THE ELITE’S WILL BE THE ONLY SAVING GRACE. fARM LAND MIGHT BE GOOD ALSO.
AN ELITE’S TOLD ME THIS!

Joan C.Tuesday, February 21, 2017 at 6:49 pm

Well, I must have missed the system collapsing in 2016. It’s Feb in my world, 2017.

F151Tuesday, May 24, 2016 at 5:57 pm

We either start declining soon…..or we are headed for a blow-off with a 10-12% rise coming first. And THEN the decline.

Mike ClancyTuesday, May 24, 2016 at 5:57 pm

Being on the sidelines right now improves my SAN (sleep at night) factor, sadly.

nakita TiyadeTuesday, May 24, 2016 at 6:13 pm

Only leap of faithfulness a positive mode Amaze grace Surrender perceived limitations and trust God is greater progress in economy by giving jobs making difference Join me together as one developing needs future purpose l believe it today best buy plus sharing with people needs and business opportunity plus jobs

Al HallTuesday, May 24, 2016 at 6:15 pm

An elite connection has told me this is coming- and will be this year! He said in June,July, or August ISIS will attack the USA in multi-cities at the same time. Dirty bombs maybe used. Then Congress will cancel elections and make Obama dictator!!
Now a CIA connection friend told me Obama would be the last president 10 years ago- before he was elected??
This info ties together well. markets will collapse this year. The elite’s want you all to be in deep debt. Get out of there banking system now! Also, get out of anything paper- ” if it printed on paper- it’s only worth the paper it’s printed on!!” Get gold or silver–PHYSICAL ONLY IN YOUR HANDS!!!!!..
AL

rogerTuesday, May 24, 2016 at 6:20 pm

A potential problem is that the average P/E over time is about 14. So prices are way above that level. And, due to govt worrying about a market decline, many stocks are trading for prices that fundamentals do not justify.

Al HallTuesday, May 24, 2016 at 6:21 pm

JAMES- TRUST ME- I HAVE INSIDE CONTACTS- WHEN THE SKY HITS YOU– YOU WILL BE A GONER. THE ELITE’S WANT 95% OF THE POPULATION GONE. YOU’LL BE ONE OF THE FIRST!

GordonWednesday, May 25, 2016 at 1:59 am

Al Hall
Of course they want us gone as robots will replace all of us. We will only be a drag on the economy. I imagine your inside contacts are in the bible? Of course if we are gone who will be left to buy their shoddy merchandise.

kerry DunnTuesday, May 24, 2016 at 6:21 pm

mike, i read your comments with interest every day . things longterm dont look good. but sometimes i think these men are talking their BOOK. . as i notice that some of them have very large short positions. keep up the good work , kerry .

MeatheadTuesday, May 24, 2016 at 6:34 pm

Buy silver, store food, water and ammo, get out of cities into rural areas, lock and load and defend you and yours from the roaming, starving mobs.
Most people will be ill-prepared and will perish within the chaos – rioting, looting and killing.

jimTuesday, May 24, 2016 at 10:46 pm

How long have you entertained these thoughts? Did you ever read Howard J Ruff’s book “survive and win in the inflationary eighties” ? People have been screaming about a coming collapse for the past 40 years. Another couple of decades and we will be in our graves so why stop now.

pedroTuesday, May 24, 2016 at 6:36 pm

I am an old geezer now, working on my eighth decade. I have books printed in every decade since the ’50’s telling me to prepare for the impending collapse and total anarchy that will follow. All of those books were written by “experts” with more billionaire “experts” quoted within their pages. The authors all got rich, but their advice sucked. I suppose with all the influx of new criminals from all points of the compass coming here, the time is closer, but no one has the crystal ball. I guess like the bible says, the end is nearer than when we first believed. It has been 2000 years since Paul said that.

VictorTuesday, May 24, 2016 at 6:44 pm

The key phrase is “they built up wealth”. That is far different than creating wealth. Building up wealth as a corporate raider by tearing down organizations built over decades by hard work, ingenuity and innovation is a negative for the economy. Building new houses in flood plains or on mountainsides that slide into the ocean and letting taxpayers pick up the tab is a negative. At some point the negatives take a toll. Then politicians over-react. Those on the inside see it quicker and know when their capital is about to be endangered. And their “modus operandi” ending. Arms merchants and drug dealers have amassed even greater wealth by openly flaunting laws and operating in the poorest of poor nations so they see market crashes as a way to accumulate even more wealth. With wealth, they take power away from central bankers so it is no wonder central bankers are buying stocks and commodities to stave off disaster. The billionaires just have a higher perch and a better view of the looming disaster. It can be preventing by going back to rewarding wealth creators but that means an end to amassing a fortune by moving other people’s money around.

johnTuesday, May 24, 2016 at 6:49 pm

Yea
We all need a holiday where we can avoid newspapers,computers, information. for 2 weeks..

All the noise from the experts tell me they are panicking,because the market is not falling as predicted .If it falls the games strart all over again and the advisors make big bucks !

However I would look and take heed of MR Zell a front of house man who knows how to make money and to avoid the sharks who prey on folks like me

MonetTuesday, May 24, 2016 at 6:49 pm

Sam Zell predicts we will all be missing Chicago in a cyclical recession?

tommrTuesday, May 24, 2016 at 7:12 pm

FEAR SELLS! But not to me. I ignore most of it as meaningless NOISE! But it is really good for the markets. Doom sayers keep the investors on edge and questioning everything! This is the “Wall of Worry” that keeps the markets raising! There is little confidence in the markets right now and no danger of it getting overly confident.

I am beginning to wonder if these Big Whale investors (billionaires) are getting too old and losing their mojo. Just saying!

g. j. rustlerTuesday, May 24, 2016 at 7:18 pm

Do you believe in what is now known as “Disaster Wednesday, June 15th.”??????
Should I get out of the market now???????

GordonSaturday, May 28, 2016 at 3:58 am

Stay tuned for disaster July 15th and if it does not happen stay tuned for disaster August 15th. Sooner or later the date will be close.

AdrianTuesday, May 24, 2016 at 7:20 pm

So many smart people are short this market. Frankly the market makers want to rip their heads off. No market carries on up for ever but looking, at the weekly charts, I do not see a point of inflection just yet.
Ultimately the stock market is a brutal place. The best way to get across, the valley, is to see yourself as a scientist experimenting. Do not bet the farm on one trade. I am open to the idea of a coming financial disaster but there are too many people predicting it. It has become like newspaper headlines. And we all know how that ends.

GordonSaturday, May 28, 2016 at 4:01 am

Adrian yes your right about the market makers they want to kill the shorts. They want to do it so brutally that shorts will never stick their heads up again. They want a massacre so that in the future the longs will control the market. Up up and away. 31,000 as someone claims. This is the formula.

tommrTuesday, May 24, 2016 at 7:21 pm

When companies buy back their stock, it better show up on the balance sheet as “Treasury Stock”! If it doesn’t, it is being literally handed over to Management at not cost to them! This is direct THEFT of Stockholders money!!!

GordonSaturday, May 28, 2016 at 4:07 am

tommr your right but the SEC is a convoluted mess. They are constantly having staff reductions while the market makers are constantly coming up with new ideas on how to control the market its a shambles. The town needs a new Sheriff but none is on the horizon. Market mayhem is the order of the day. I am a buyer of gold it will always be worth something even under Harry Dents scenario of $750. Paper well it could revert to wheelbarrow status. I am to old to push a wheelbarrow.

Ray F.Tuesday, May 24, 2016 at 7:42 pm

The TSA needs to be privatized. Further many of the current leaders should be fired. Secondly, Our debt is drawing the whole world to us. Proof can be found in housing numbers. The numbers looked good on the surface but examining them shows That the purchasers of homes are mostly wealthy or foreign born. I am sure it is not the Japanese they learned their lesson years ago in New York City.

F151Friday, May 27, 2016 at 4:41 pm

Agreed!!

John KTuesday, May 24, 2016 at 7:43 pm

There are so many things wrong like huge unpayable student loans, large subprime car loans,unfunded pension plans, 3 quarters of falling earnings, 5 quarters of falling revenue, etc. It is hard to imagine the market not having a significant correction.

GordonSaturday, May 28, 2016 at 4:09 am

John K. Shsss. Don’t tell Janet Y that. It could knock her of her interest rate podium.

ThomasTuesday, May 24, 2016 at 8:04 pm

Zell, Soros, Druckenmiller and Icahn (and lately there are credible others as well) all have several things in common. They all have build considerable wealth, they are well connected with the banking elite, they all have real skin in the game! They all have experienced several cycles in the past and kept their wealth largely intact. King Solomon said “There is much wisdom to be found in counseling the wise”. Sound money management is not a gift, it is a skill set! It is then just sound advice to ask (like Mike is asking): What do these captains of industry see what we as prudent investors do not see or should see?? It is indeed a valid question!!

GordonSaturday, May 28, 2016 at 4:12 am

The 4 wise men or the 4 Horseman of the Apocalypse

ZewoTuesday, May 24, 2016 at 8:19 pm

I hope to be able to have my own business and then I can get people to work with me know what happens when I have money to help people don’t have nothing else I can help them and god bless you all

Ronald WilsonTuesday, May 24, 2016 at 8:35 pm

I saw the post in “Other Developments of the Day” today but I assure you – heads did NOT roll. They only moved Peter Neffenger to another spot in TSA. This is a government job – no one really ever gets fired. Never trust the headlines: Heads are starting to roll at the Transportation Security Administration (TSA) over huge airport lines, hidden bonus concerns, and more. TSA Administrator Peter Neffenger reassigned Kelly Hoggan, TSA assistant administrator for security operations. Neffenger also assigned new administrators in Chicago, where lengthy security lines got a huge amount of publicity in the past few weeks.

Chuck BurtonTuesday, May 24, 2016 at 8:51 pm

So the billionaires are worried about U.S. debt – but it is still below the 250% of GDP it reached in 2007-8. Then the Fed came out with QE and expanded money supply, so GDP grew, and even though debt grew in ensuing years, and the percentage fell. Of course, that resulted in inflation and lost jobs, and a declining standard of living for millions, but the precious Debt/GDP ratio fell. Can the Fed do something similar to cut Debt/GDP this time? Maybe higher interest rates will raise the ratio again, but then there will be some room to fiddle with the figures. After all, Japan is up to a rate of 246%, and China is closing on that number. China had 22 defaults in the first quarter of this year, 75% in state owned firms, and I’m sure their central bank will do some fancy fiddling of their own.

TedTuesday, May 24, 2016 at 9:07 pm

Our economy will receive terrible hits. What bothers me is the Japanese had their economy fall by about 75% almost 30 years ago, they now go no lower but neither do they crawl out of their malaise. Therefore, when our turn comes how long will our politicians be able to keep the pain going to avoid a complete collapse. Is the Japanese mirror a good indication of what will happen to us. Should history repeat itself, what’s our fate 30 – 40 years or never???

Chuck BurtonTuesday, May 24, 2016 at 9:44 pm

Something else: Last 12 month earnings(LTM) for the S&P500 stocks is $87/share, as of the first quarter of this year. That is down from $99, as of the first quarter of 2015, and $106, first quarter 2014. Yet, even with an 18% LTM drop, the S&P remains within 3% of it’s all time high. This means the PE ratio has risen from 18.6 to 23.9, or 5.3. A lower PE ratio tends to indicate more strength.This would seem to mean that market strength has weakened by about 28.5% in just these two years. How much more before it gives way?

GordonSaturday, May 28, 2016 at 4:17 am

Chuck Burton
There are a lot of fingers in this dike. The Fed is living up to its reputation of not fighting it. Its a charade and a shell game but investors are now like Zombies following them and looking for a financial fix. Your older than me so I bow to your wisdom. Sadly your wisdom is not shared by others. There are to many financial junkies out there fully invested with borrowed money salivating at all the profit they hope to make. You and I with our experience of years know how it will end.

IvanoTuesday, May 24, 2016 at 9:53 pm

Zell, Soros, Druckenmiller and Icahn
Do you really believe that these parasites are going to provide useful advice to the peons that they pray upon? Soros was convicted of insider trading but he was so wealthy the legal system just gave him a pat on the head. These guys look at retail investors as the suckers in the market. If they are able to induce retail investors to panic, thanks to electronic trading, these parasites will massively short the market and make billions off of the backs of retail investors. They are intentionally planting the seeds of fear deep into the subconscious retail investors. These jerks will benefit handsomely from another collapse in the market when retail investors run for the exits.

EdTuesday, May 24, 2016 at 10:28 pm

taking winner chips off the table and might sell 1/3 up to 1/2 of some chips while building a list of Must buy good companies After the party is over . . pray for America to Return to GOD

jimTuesday, May 24, 2016 at 11:16 pm

I sold my old desk to the antique store for $100. The next day I saw it for sale in his window for $1000 so I went in and bought it back because it appears that is has great value. There was a time when one could save money and expect to get a return in the form of interest. That doesn’t work anymore so we have all been forced to become speculative traders. This is a scary thing when you think about it. Insurance companies and pension funds are gambling with their money in hedge funds because they cannot make viable projections using the interest rate – as they used to. That is a scary thing too. I think the only people who will do well in the long run are those who own hard assets and have no debt. All the rest of us are on the Titanic with no lifeboats so we may as well live it up while we can

Thomas BommaritoWednesday, May 25, 2016 at 12:52 am

My experience indicates that IF the DJIA closes 10% below it’s high, it will ultimately drop 33 to 50%, and conversely, IF it closes 10% above it’s low, it will continue up for at least 33 to 50 %. I’m a simple guy, but when it doesn’t go up like it has been for the last number of months, I’m betting it’s going down to test that 33% below it’s DJIA 18XXX high.

GordonWednesday, May 25, 2016 at 2:00 am

Just checked the figures on the Asian markets and as usual they are playing follow the leader blindly. Forget about local financial activity.

Albert E. Gilding Sr.Wednesday, May 25, 2016 at 2:15 am

What most of your readers seem to be missing is that we are somewhere within a monstrous credit “bubble” about ready to burst. What caused this “bubble”? When Nixon took us off the gold standard, it left us with only the “good faith and credit” of the US Treasury. Other countries when faced with what’s called “fiat currency” had their economies rapidly collapse through catastrophic inflation of their money supply. Through some measure not quite understood the Federal Reserve granted the Banks the ability to lower their currency reserves, and allowed them the ability to loan out $20 for every dollar they retained. The inflation of our currency was under the control of the Banks’ ability to increase deposits until the discovery of giving customers 30 days to pay for what they purchased that somehow morphed into the massively expanding Credit Card industry we have today. Economists can tell us that we have had several recessionary cycles within the last hundred years, each one causing a temporary collapse of industry, each one more serious than its predecessor. In 2000 it crippled the Tech industry. In 2008 it was the housing market. Our credit based money disappeared so rapidly that the Federal Reserve instituted “Quantitative Easing” Our evonomy very narrowly averted collapse then, but I’m afraid that “WE” will be required to bite the bullet of economic collapse this time, and the predictions are sometime this year (2016) or very soon after the elections in November. The “smart money” worldwide are hoarding dollars causing their value to temporarily increase, but when there are insufficient dollars for automatic teller machines to dispense, faith will quickly disappear, along with massive amounts of credit as those companies begin to refuse to allow use of their cards. After that it seems that it will be every man (and woman) for him/herself. Will that come to be called “The Great Tribulation? Hmmm, that sounds like one of my books. That will also be “Adios” to too much of what we all are holding onto too dearly, against what the Bible warns us, “Place not your faith in material things!”

GordonSaturday, May 28, 2016 at 4:22 am

Albert E
Want to have a little fun? Go into your bank and tell them you want to have $25,000 in cash money. They will tell you to return in a week and that they do not have it on hand and need to order it. They will warn you that once you walk through the front doors your on your own and you should bring a guard with you.

AllenWednesday, May 25, 2016 at 2:33 am

It is logical to assume the heavy hitters
know something we don’t. After all they
have tentacles that stretch far and wide.
That being said, I only believe what the
charts say to me…depending on my tea
leaf reading ability. This is my general
approach the rest is my reliance on what
the staff says at Weiss.

Robert CalabroWednesday, May 25, 2016 at 2:48 am

Mike: We are in the eye of the the storm.What drove this market is cheap money, not fundamentals. We never ha d a real recovery. According to CAPE the market is overvalued by at least 30%. God willing this will be the final end to fiat money. It is my hope and prayer that we go back to the gold standard. Regards, Robert Calabro.

Frenzy466Wednesday, May 25, 2016 at 5:21 am

World economies cannot grow debt greater & faster than GDP forever. Eventually the day of reckoning will come. No one knows when , where nor how it will happen but starting to prepare for it is a smart move…..

GordonSaturday, May 28, 2016 at 4:25 am

Frenzy that is the purpose behind e money. There is no day of reckoning they just push a button and wham your account is topped up to tapped out. Always expect the later.

JamesWednesday, May 25, 2016 at 8:13 am

Technology and advancements in it is surely making people live more economically better lives than ever before. I don’t believe all the negative mass media.

MikeThursday, May 26, 2016 at 1:22 pm

I really don’t think that everyone playing games on their smart phones is going to solve our problems.

GordonSaturday, May 28, 2016 at 4:28 am

James believe it. All that make your life better stuff comes at a price. If your watching through the glass window at a robot doing your job the robot is surely not going to buy all that technology and advancement stuff he is making. If your lucky your government will give you enough to put a roof over your head and food in your belly. Beyond that nothing.

margaretWednesday, May 25, 2016 at 5:35 pm

Well, i’m following porter stansbury’s reccommendations from his book america20/20, doug casey’s from his newsletter(international man), larry edelson’s here, jim rickard’s gold speculator, and agora financial’s. I don’t think this kind of crazy ride is part of the natural, but is the goal.
” WHAT IS A COMMUNITY MONEY SYSTEM?
Federal Reserve Bank notes and personal checks are a natioanal bankers privately owned money system………
We the people have the right to print money. We gave a portion of this right to theNational Government in the Constitution. It gets its authority from us. We exrcise our right top print money every time we print personal checks. It is a common,everyday right. We can use it in any intelligent and orderly way to facilitate the production and exchange of ideas, goods and services. Money is just a convenient means of exchange. Money is not wealth. Wealth is ideas, goods and services.”-Leonard Orr.

GordonSaturday, May 28, 2016 at 4:31 am

margaret why do you think JFK was killed. He wanted to kill the Fed and its Federal Reserve note system and print real American money some of which was actually printed and look where that got him and his brother. The Federal Reserve in conjunction with the Central banks world wide control the world. As Rothschild said ” I care not who makes the countries laws I only care on who handles its money”

grmanThursday, May 26, 2016 at 11:00 am

These are historic economic times. It has never been like this. The Fed runs the stock market now, not buisness profits and normal capital metrics. How did everyone allow all this to happen? Being in debt and living above your means is encouraged now. Saving is taboo. There can only be one outcome to all this madness. If people don’t start looking at what is going on from just a COMMON SENSE angle, they are going to lose everything. The people running this show certainly are’nt using any!

GordonSaturday, May 28, 2016 at 3:42 am

Well it looks like the Fed has more control over the gold markets than the the billionaires. Yellen the ? yelled BOO again and scared the crap out of the gold market yet again. That along with all that phony paper gold flying around has brought gold to a standstill well for now. The markets keep insanely feeding on free money and handouts to keep them flying high. The summer doldrums are certainly here. The market keeps inching upward feeding on every little nugget/scrap of positive information it can find. It is turning over every rock to find something positive. It keeps overlooking poor retail sales lower May car sales idle train cars and engines lower Baltic Dry index and the fudged numbers given out by companies in their creative financing that barely borders on being legal. As I understand it the SEC is looking at these creative features but they are in the hip pocket of Wall Street and I doubt if much will surface to rock the boat. I think Yellen is so caught up in her dreamland numbers that she will pull the trigger in June and no later than July. She must get at least 1 more interest rate raise between now and election time to retain some shard of believability. If she fails investors surely will catch onto to her petal pulling game. Savvy investors will realize that the”jig is up”

GordonSaturday, May 28, 2016 at 3:46 am

Reader Harry A has truly got a handle on things.

SteveSaturday, May 28, 2016 at 11:15 am

Why are these billionaires telling us the market is going down and we should buy gold? Could it be that they just want to sell us their gold at higher prices and buy stocks at lower prices?

HowardThursday, June 2, 2016 at 11:44 am

To All ..Lets see what happens in July . Look for a major event to take place in July historical event set to happen. Does anyone care to know? Ask? All your losses back and profits made if you invest before July. This will be the Top Story of the years and talked about for many years to come. You can become debt free and be financially

rudy vacekSaturday, June 11, 2016 at 11:42 pm

Going out of business sales are generally managed by third parties who jack the prices up by multiples of three, and then mark them down 50% You can end up paying more for items than they were originally priced, during the store closure. After a few weeks there will be big markdowns on stuff that have little utility.

I would not waste my time

cliff buchananMonday, June 20, 2016 at 12:48 pm

yes you may be right about depopulation its easer to handle and manage a small group then masses of people war is a form of depopulation also checkout FEMA CAMPS